3. Loans from commercial banks generally appear on balance sheets as accounts payable. (1 Point) False True 4. Retained earnings are the accumulated amount of net income left over for the business after it has paid out dividends to its shareholders * (1 Point) False True 5. The promissory note on bank borrowings specifies the amount borrowed, the interest rate, the repayment schedule, which can call for either a lump sum or a series of installments, any collateral that might have to be put up as security for the loan, and any other terms and conditions to which both the bank and the borrower have agreed upon. (1 Point) False True 6. The firm may source the cash needed internally through retained earnings and debts. (1 Point) False True 8. Loans from commercial banks generally appear on balance sheets as accounts payable. * (1 Point) False True 9. It is where investors have their first chance to participate in a new security issuance and the issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business (1 Point) Primary market Public market Secondary market Open market